Asian stocks rise to track gains on Wall Street
US stocks ended on a positive note amid expectations that the world’s biggest economy will be able to achieve a soft landing.
Japanese, South Korean and mainland Chinese stocks also rose, with much of the region, including Australia, Hong Kong and Singapore closed for a public holiday.
The gains came after Wall Street traders sent the S&P 500 to its 22nd record this year after data showed the US economy remained in good shape. A $4 trillion surge in US equity values in just three months has startled doomsayers, while leaving a host of strategists scrambling to update their 2024 targets.
“Japanese stocks are rebounding from yesterday’s drop,” said Masahiro Yamaguchi, a senior market analyst at SMBC Trust & Banking Ltd. The moves are “driven by the US stock market, as various indicators show the resilience of the US economy.”
Traders are on alert for potential swings in Japan’s currency after officials stepped up warnings this week to stem its slide. While the yen has since strengthened a little against the dollar, it remains close to levels not seen in decades.
Some recent weakening moves in the yen were speculative and not reflecting fundamentals, Japanese Finance Minister Shunichi Suzuki said Friday, adding there is no specific defense line regarding the exchange rate level.
There is a growing sense of wariness of intervention, said Taishi Fujita, associate in the global markets division for the Americas at MUFG Bank. “Even if you build a position selling the yen during a strong phase, you are likely to drop
